Brigade Hotel Ventures (BRIGHOTEL) Q4 16/17 earnings summary

Executive summary

• Incorporated on 24 Aug 2016; hotel operations had not commenced by 31 Mar 2017, while a hotel in Ahmedabad remained under construction. The first reporting period covered 24 Aug 2016–31 Mar 2017.

• Board approved in principle an arrangement to transfer hotel operations, construction projects and hotel land assets from Brigade Enterprises Limited; completion was expected by FY2017-18 end, subject to NCLT approval.

Financial highlights

• Income was ₹0.11 lakh, expenses ₹1.25 lakh, and loss before and after tax ₹1.14 lakh for the period; no prior-year comparison was available.

• Total comprehensive loss was ₹1.14 lakh; basic and diluted EPS were each -₹0.11.

• Balance sheet included ₹164.21 lakh of capital work in progress, ₹100 lakh share capital, and ₹98.86 lakh total equity.

• Cash and cash equivalents were ₹0.12 lakh at period-end; current liabilities totaled ₹74.49 lakh, including ₹48.42 lakh trade payables and ₹26.07 lakh other current liabilities.

Outlook and guidance

• The hotel-asset arrangement was expected to become operational by FY2017-18 end, subject to National Company Law Tribunal approval; consideration may be securities and/or cash.

• Hotel operations were still under construction at period-end, so hospitality revenue was not recognized.